Innovation Index Fund Manager Up 10% in 2008

The Innovation Index Fund Manager is up 10% in 2008. The Top 20 Innovators of The Innovation Index have rebounded well in the 2nd quarter of 2008 to cause The Innovation Index Fund Manager to have double-digit gain for the year.

The Top 20 Innovators	Ticker	Dec 31, 2007	May 13, 2008	Quarterly	2008 %	2007 %
APPLE INC	AAPL	198.08	189.96	32%	-4%	133%
AMERICA MOVIL	AMX	61.39	56.90	-11%	-7%	36%
AMAZON INC	AMZN	92.64	74.56	5%	-20%	135%
BEST BUY INC	BBY	52.51	43.63	5%	-17%	6%
COSTCO WHSL CORP	COST	69.60	73.98	14%	6%	33%
CISCO SYS INC	CSCO	27.07	25.89	7%	-4%	-1%
EBAY INC	EBAY	33.19	31.41	5%	-5%	10%
GENERAL ELECTRIC CO	GE	36.74	32.33	-13%	-12%	0%
GOOGLE INC	GOOG	691.48	583.00	32%	-16%	50%
HEWLETT PACKARD CO	HPQ	50.48	44.27	-3%	-12%	23%
IBM	IBM	107.69	126.58	10%	18%	12%
INTEL CORP	INTC	26.50	23.76	12%	-10%	32%
MCDONALDS CORP	MCD	58.51	61.17	10%	5%	34%
3M CO	MMM	84.32	77.18	-2%	-8%	9%
MERCK & CO INC	MRK	57.61	39.17	3%	-32%	35%
MICROSOFT CORP	MSFT	35.46	29.78	5%	-16%	20%
NIKE INC	NKE	64.00	65.66	-3%	3%	30%
PROCTER & GAMBLE CO	PG	73.05	65.73	-6%	-10%	15%
RESEARCH IN MOTION LTD	RIMM	113.40	140.84	25%	24%	166%
AT&T INC	T	41.16	39.26	3%	-5%	19%
Innovation Index Fund Manager		108.27	118.56		10%	66%
S & P 500	^GSPC	1,468.36	1,403.04	6.07%	-4%	3.5%
NASDAQ	^IXIC	2,652.28	2,495.12	9.48%	-6%	9.8%
Dow Jones	^DJI	13,264.82	12,832.18	4.64%	-3%	6.4%
© Innovation Index Group, Inc. http://www.InnovationIndexGroup.com

The Innovation Index Fund Manager is up 10% in 2008. The Top 20 Innovators of The Innovation Index have rebounded well in the 2nd quarter of 2008 to cause The Innovation Index Fund Manager to have double-digit gain for the year. The Fund Manager increased positions in some of these innovators in March 2008, and it is this increase in net positions that created the double-digit performance jump. Apple, Google, RIM, Costco, IBM, Intel and McDonald's have each delivered 10% or higher return this quarter. Apple and Google lead all innovators with 32% appreciation in the 2nd quarter. Overall, five innovators are in the green for all of 2008 - Costco, IBM, McDonalds, Nike and RIM. The major U.S. indices are down anywhere from 3% to 6% in 2008.

Innovation Index Group believes that the U.S. economy will recover significantly in the 2nd half of 2008, and the Top Innovators of The Innovation Index will reward the patient, long-term investor.

Innovation Index Group has BUY recommendations on the Top 20 Innovators of The Innovation Index.

About Innovation Index Group:

Innovation Index Group, Inc. is a new investment management company focused on systematically identifying, tracking and investing in the most innovative publicly traded companies in North America – collectively called the Innovation Index. We have developed the Innovation Index Fund, LLC as our first vehicle to invest in the Innovation Index. Over the past six years, the Innovation Index would have generated a gross average annual return of 40% based on historical model.* The Innovation Index returned 66% in 2007, and the Innovation Index Fund Manager is up 10% in 2008.*

Innovation Index Group, Inc. and Innovation Index Fund LLC are registered California Corporations, and member of the Irvine Chamber of Commerce in Orange County. Further, Innovation Index Fund LLC is a private placement investment partnership organized under the California state regulations.

The Innovation Index Reports:

Invest in The Innovation Index - Innovation Index Fund tracks The Innovation Index
The Innovation Index closes 2007 at 66% - 2007 Annual Report on the Innovation Index
Top 50 Innovative Companies in the world - 2007 Report on Top 50 Innovative Companies
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance

About The Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.

The Innovation Index returned 66% in 2007 based on performance model, and would have returned 174% over the previous five years (2002-2006) based on historical model*. This assumes equal investment in each stock of The Innovation Index as of December 31, 2001. An average of $100 invested in The Innovation Index on December 31, 2001 returned $454 as of December 31, 2007. By comparison, $100 invested in S & P 500 returned 28% or $129, $100 invested in NASDAQ returned 34% or $136, and $100 invested in the Dow Jones Index returned 30% or $131 through December 31, 2007. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the past six years.*

Alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NASDAQ: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.

Disclaimer: The Innovation Index Group, Inc. invests in the stocks comprising The Innovation Index.
*Past Performance Does Not Guarantee Future Results